ALABAMA DEPARTMENT OF HUMAN RESOURCES

[Pages:11]Human Resources

Chapter 660-3-16

ALABAMA DEPARTMENT OF HUMAN RESOURCES CHILD SUPPORT ENFORCEMENT DIVISION ADMINISTRATIVE CODE

CHAPTER 660-3-16 INCOME WITHHOLDING

TABLE OF CONTENTS

660-3-16-.01 660-3-16-.02 660-3-16-.03 660-3-16-.04 660-3-16-.05

660-3-16-.06

660-3-16-.07 660-3-16-.08 660-3-16-.09

Appendix A

Definitions Basis for Income Withholding Criteria for Income Withholding Withholding Limits and Costs Administrative Implementation of an Income Withholding Order Administratively Adding an Amount Toward Arrears Adjusting an Income Withholding Order Terminating an Income Withholding Order Right to Contest the Administrative Income Withholding Order Forms (Repealed 6/30/18)

660-3-16-.01 Definitions.

(1)

As used in this Chapter, the following terms shall

have the following meaning:

(a)

"Income" - Wages, salary, tips, commissions,

bonuses, unemployment compensation, workers' compensation,

disability payments, payments pursuant to a pension or retirement

program and interest, and any and all money due or payable to a person,

the entitlement to which is based upon remuneration for employment,

past or present, after the deduction of those amounts required to

be withheld by law. Income shall also include any other continuous

or periodic income from whatever source whether earned or unearned

except as expressly limited by law.

(b)

"Employer" - Any person, business, corporation,

partnership, company, firm, or unit of municipal, county, state, or

federal government.

(c)

"Court" - Any juvenile or family court division of

the circuit or district court in the county where the mother of the

child resides or is found, in the county where the father resides

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or is found, or in the county where the child resides or is found and, in the case of a petition seeking a divorce, or legal separation, a petition seeking a modification of support previously ordered under a divorce decree or a petition seeking a contempt citation for failure to pay support previously ordered under a divorce decree, the circuit court or the domestic relations division of the circuit court. In cases involving the enforcement of another state's order of support within this state, court may mean the courts of the county where the employer is located or is found, and may also mean the court or agency of another state or jurisdiction outside the State of Alabama whose functions include the issuance and enforcement of support order.

(d)

"Clerk of the Court" - Any circuit court clerk,

district court clerk, or juvenile court clerk, or their employees,

with responsibility for docketing or otherwise carrying out the

court's clerical duties in regard to domestic relations matters,

support and nonsupport cases, including the receipt and disbursement

of support payments.

(e)

"Obligor" - Any person ordered by the court to make

periodic payments for the benefit and support of another person or

minor child.

(f)

"Obligee" - Any person for whom support benefits are

ordered by the court and shall specifically include the Department

of Human Resources when any person has assigned their rights to

support payments to the department under any provision of law or when

the department is otherwise representing the obligee. Obligee may

also include an agency or department of this or another state or

jurisdiction to which a person has assigned his or her rights to

support.

(g)

"Department" - The Department of Human Resources of

Alabama, including the County Departments of Human Resources.

(h)

"Support or Support Order" - Any order, decree or

judgment for support of a child (or in the case of an order being

enforced pursuant to the requirements of Title IV-D of the Social

Security Act, a spouse or former spouse) issued by a court of this

state or a court or agency of another state or jurisdiction, whether

interlocutory or final, including orders issued for any of the

following purposes:

1.

Current support of a minor child.

2.

Current medical support, which included the cost of

medical support or unreimbursed medical expenses.

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3.

Arrearage that has accrued due to unpaid child or

medical support during the child's minority, including enforcement

post-majority of arrearages accrued during minority and interest

that has accrued or continues to accrue on that arrearage.

4.

Spousal Support when such spousal support is

collected by the Department of Human Resources or the department's

designee pursuant to the requirements of Title IV-D of the Social

Security Act.

(i)

"State Title IV-D Agency" - The state agency

designated to administer the statewide child support program

authorized under Title IV-D of the Social Security Act.

(j)

Income Withholding Order or Notice ? An order or

notice in the standardized format prescribed under Title IV-D of the

Social Security Act, as amended, that requires an employer to deduct

a portion of an employee's income for the payment of support.

Author: Janice Grubbs

Statutory Authority: Code of Ala. 1975, ??30-3-60, 30-3-191; 42

U.S.C. 666(b) and (c).

History: New Rule: Filed June 5, 2001; effective July 10, 2001.

Amended: Filed August 6, 2009; effective September 10, 2009.

660-3-16-.02 Basis For Income Withholding.

(1)

Income withholding refers to the act of ordering an

obligor's employer to withhold a portion of the obligor's income to

apply to his/her child support obligation(s). Income withholding

has been authorized in Alabama since 1984. In 1989, Alabama income

withholding statutes were updated to require, effective

November 1, 1990, immediate income withholding in all orders entered

or modified in Alabama. Effective May 4, 1994, Alabama law provided

for the termination of income withholding under certain

circumstances without a hearing upon filing an affidavit by the

obligor.

(2)

Income Withholding is authorized as a means of

collecting child support and spousal support (when collected in

conjunction with child support).

(3)

Employers are required to comply with income

withholding orders or to show reason why they cannot comply.

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(4)

The State IV-D Agency has the authority to order that

income withholding be implemented.

(5)

This State IV-D Agency has the authority to increase

the amount of monthly support payments to include amounts for arrears

for the purpose of securing overdue support.

Author: Janice Grubbs

Statutory Authority: Code of Ala. 1975, ??30-3-60 through 30-3-71,

30-3-197(a)(5) and (7), 30-3A-501 through 30-3A-506; 45 CFR 303.100;

42 U.S.C. 666(b) and (c).

History: New Rule: Filed June 5, 2001; effective July 10, 2001.

660-3-16-.03 Criteria For Issuing An Income Withholding Order.

(1)

The obligor's child support payments are not deducted

from his income until an income withholding order (IWO) is obtained

and issued. Most support orders, depending on the time period in

which they were entered, contain an IWO.

(2) employer.

An IWO is issued by serving notice on the obligor's

(3)

If the support order does not contain an IWO, legal

action must be taken to enter an IWO before income withholding can

be initiated.

(4)

Support orders entered before 1984 do not contain

income withholding orders. When a legal action is taken on a case

with a pre-1984 support order, action should be taken at the same

time to obtain an IWO. Upon entry of the income withholding order,

it will be issued immediately unless:

(a)

The court finds there is good cause to preclude the

issuance of an IWO, and the court indicates its findings in writing

as to why the implementation would not be in the best interest of

the child; or

(b)

The parties enter into a written agreement that

provides an alternative arrangement.

(5)

In the event that the court finds that the IWO should

not be implemented immediately, the IWO may be issued when one of

the following occurs:

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(a)

The employment of the obligor is verified and the

noncustodial parent becomes delinquent in his/her support obligation

in a dollar amount equal to one month's obligation;

(b)

The court orders it;

(c)

The noncustodial parent requests it; or

(d)

The obligee files an affidavit with the Clerk of the

Court requesting an IWO and stating the basis for the request.

(6)

Support Orders entered between 1984 and

November 1990 already contain an income withholding order. For a

support order entered during this period, an income withholding order

is issued when:

(a)

Employment of the obligor is verified and the

noncustodial parent becomes delinquent in his/her support obligation

in a dollar amount equal to one month's obligation;

(b)

The court orders it;

(c)

The obligor requests it; or

(d)

The custodial parent files an affidavit with the

Clerk of the Court requesting an IWO and stating the basis for the

request.

Author: Janice Grubbs

Statutory Authority: Code of Ala. 1975, ??30-3-60 through 30-3-71,

30-3-197(a)(5) and (7), 30-3A-501 through 30-3A-506; 45 CFR 303.100;

42 U.S.C. 666(b) and (c).

History: New Rule: Filed June 5, 2001; effective July 10, 2001.

660-3-16-.04 Withholding Limits And Costs.

(1)

The maximum amount that can be deducted from an

obligor's disposable income for child support obligation is:

(a)

50 percent if the obligor supports a second family

and is behind 12 weeks or less in his/her child support obligation;

(b)

55 percent if the obligor supports a second family

and is more than 12 weeks behind in his/her child support obligation;

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(c)

60 percent if the obligor does not support a second

family and is behind 12 weeks or less in his/her child support

obligation; or

(d)

65 percent if the obligor does not support a second

family and is more than 12 weeks behind in his/her child support

obligation.

(2)

If the obligor has more than one income withholding

order against his/her income, current support must be satisfied for

all orders before any money is applied to arrearages. If the employer

is unable to satisfy all the income withholding orders against an

obligor because to do so would violate the applicable withholding

limit:

(a)

The employer must notify the court that they are

unable to comply; and

(b)

All orders should be brought before the court for

review to ensure that all children receive child support.

(3)

In IV-D child support cases if the noncustodial

parent is ordered to pay current child support and medical support

and his/her income is not sufficient to cover both obligations,

current child support must be withheld first.

Author: Janice Grubbs

Statutory Authority: Code of Ala. 1975, ??30-3-60 through 30-3-71,

30-3-197(a)(5) and (7), 30-3A-501 through 30-3A-506; 45 CFR 303.100;

42 U.S.C. 666(b) and (c).

History: New Rule: Filed June 5, 2001; effective July 10, 2001.

Amended: Filed August 6, 2009; effective September 10, 2009.

660-3-16-.05 Administrative Implementation Of An Income Withholding Order.

(1)

When a support order contains an income withholding

provision and the case meets criteria for income withholding, the

state IV-D agency may directly order the obligor's employer to

implement income withholding by issuing an Administrative

Order/Notice to Withhold Income For Child Support. This action may

be taken on both interstate and intrastate cases provided that there

is no court action pending on the case.

(2)

The employer must respond by:

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(a)

Sending the withholding to the appropriate

collection agent designated on the document;

(b)

Notifying the appropriate collection agent if the

obligor changes employment, or if benefits that constitute income

for the obligor are terminated;

(c)

Providing a copy of the Order/Notice to Withhold

Income for Child Support to the noncustodial parent;

(d)

Complying with the law of the state of the obligor's

principal place of employment for withholding from income with

respect to:

1.

The employer's fee for processing an income

withholding order;

2.

The maximum amount permitted to be withheld from the

obligor's income; and

3.

The time within which the employer must implement the

withholding order and forward the child support payment.

Author: Janice Grubbs

Statutory Authority: Code of Ala. 1975, ??30-3-60 through 30-3-71,

30-3-197(a)(5) and (7), 30-3A-501 through 30-3A-506; 45 CFR 303.100;

42 U.S.C. 666(b) and (c).

History: New Rule: Filed June 5, 2001; effective July 10, 2001.

Amended: Filed August 6, 2009; effective September 10, 2009.

660-3-16-.06 Administratively Adding An Amount Toward Arrears.

(1)

In a situation where a child support arrearage exists

and the order does not address an amount toward that arrearage, the

State IV-D agency has the authority to increase the amount of monthly

support payments for the purpose of collecting past-due support

provided that there is no court action pending on the case.

(2)

The procedure in which an amount is ordered toward

the arrears may be done at the same time the Administrative

Order/Notice to Withhold Income For Child Support is issued directly

to the employer.

(3)

The amount added toward the arrearage should be

twenty-five percent of the current support amount.

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(4)

In arrearage cases only where current is no longer

due, the amount toward the arrears should be the amount that was

previously ordered toward current.

Author: Janice Grubbs

Statutory Authority: Code of Ala. 1975, ??30-3-60 through 30-3-71,

30-3-197(a)(5) and (7), 30-3A-501 through 30-3A-506; 45 CFR 303.100;

42 U.S.C. 666(b) and (c).

History: New Rule: Filed June 5, 2001; effective July 10, 2001.

Amended: Filed August 6, 2009; effective September 10, 2009.

660-3-16-.07 Adjusting An Income Withholding Order. Sometimes it will be necessary to adjust the amount being withheld from the obligor's income. For example:

(1)

If the withholding order is for current support plus

a periodic payment on an arrearage, when the arrearage is paid off,

the withholding amount will need to be reduced;

(2)

If the child support order is modified, the income

withholding order will need to be adjusted;

(3)

An IWO is adjusted by obtaining a new income

withholding order from the court.

(4)

When an amount has been added toward the arrears by

issuing an administrative Order/Notice to Withhold Income for Child

Support, the IWO may be amended by sending an amended administrative

Order/Notice to Withhold Income for Child Support to the employer.

Author: Janice Grubbs

Statutory Authority: Code of Ala. 1975, ??30-3-60 through 30-3-71,

30-3-197(a)(5) and (7), 30-3A-501 through 30-3A-506; 45 CFR 303.100;

42 U.S.C. 666(b) and (c).

History: New Rule: Filed June 5, 2001; effective July 10, 2001.

660-3-16-.08 Terminating An Income Withholding Order.

(1)

The following are circumstances when an income

withholding order may be terminated:

(a) paid;

Current support is due, but all arrearages have been

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